Formulas

Question 1

tE = (tO + tM + tP) / 3.”

Answer 1

Triangle method - Three-points estimating
tO = Optimistic
tM = Most likely
tP = Pestimistic

Question 2

cE = (cO + cM + cP) / 3

Answer 2

Triangular distribution.
Depending on the assumed distribution of values within the range of the three estimates, the expected cost, cE, can be calculated using a formula.

Question 3

cE = (O + 4M + P) / 6

Answer 3

Beta distribution.
Depending on the assumed distribution of values within the range of the three estimates, the expected cost, cE, can be calculated using a formula.

Question 4

CV = EV – AC

Answer 4

Cost Variance
is the amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and the actual cost.

Question 5

SV = EV – PV

Answer 5

Schedule Variance

is a measure of schedule performance expressed as the difference between the earned value and the planned value.

Question 6

VAC = BAC – EAC

Answer 6

Variance at Completion

Question 7

SPI = EV/PV

Answer 7

Schedule Performance Index
is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It measures how efficiently the project team is accomplishing the work.

Question 8

CPI = EV/AC

Answer 8

Cost performance index.
The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. It is considered the most critical EVA metric and measures the cost efficiency for the work completed.